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Asset W has an expected return of 13.0 percent and a beta of 1.25. If the risk-free rate is 4.8 percent, complete the following table
Asset W has an expected return of 13.0 percent and a beta of 1.25. If the risk-free rate is 4.8 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Round your expected return answers to 2 decimal places. (e.g., 32.16) and beta answers to 3 decimal places. (e.g., 32.161))
Percentage of Portfolio in Asset W | Portfolio Expected Return | Portfolio Beta |
0% | ||
25 | ||
50 | ||
75 | ||
100 | ||
125 | ||
150 |
If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Round your answer to 2 decimal places. (e.g., 32.1616)) |
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